Stocks rally after Fed drops 'patience' but reassures April rate hike unlikelyThe Federal Reserve's Federal Open Market Committee, or FOMC, dropped its longstanding assertion that it would be "patient" in deciding when to raise rates. Instead, the central bank said it would determine when to raise rates based on progress towards its two objectives: maximum employment and 2% inflation. "This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments," the committee said. The FOMC added that it is not likely to increase interest rates at its next meeting in April, and stated that when it does decide to raise rates, it will "take a balanced approach" that is consistent with its two goals. Moreover, the committee reiterated that, even after its goals are reached, it may elect to keep rates below normal levels for some time. On the economy, the FOMC stated that economic growth appears to have moderated in recent months, while inflation has declined further below its target, largely because of energy prices. The FOMC's members unanimously backed today's statement. Stocks have rallied off their lows after the Fed's release and ahead of Janet Yellen's press conference. In afternoon trading, the Dow is up 132 points, the Nasdaq is up 28 points and the S&P is up 16 points.

FX Action: The dollar slipped FX Action: The dollar slipped in the aftermath of the FOMC announcement and statement, taking EUR-USD to 1.0735 from 1.0640, and USD-JPY from 121.10 to 120.54 lows. Shorter yields fell back on the more dovish Fed take, while Wall Street turned moderate losses into moderate gains.

Fed wants 'further improvement' in labor market to raise ratesThe Fed said in today's statement, "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. This change in the forward guidance does not indicate that the Committee has decided on the timing of the initial increase in the target range."